Florida Foreclosure Property At A Discount

In the last year there have been close to 280,000 home foreclosures in Florida. This state ranks second with the highest number of foreclosures in the nation. This is nearly a 300% increase over 2006. People have gotten into too much of a house for their pay possibilities and this has caused them to have to pack up and move on.

What happens to these empty houses? Banks and Lenders don't want empty houses, these don't produce money, but sure do spend a lot of money in upkeep and maintenance. This means that there are many houses back on the marked and many can be bought at great savings which also means that it's a great opportunity for those that want an investment property.

So, there are all kinds of properties out on the market today. There is commercial real estate, land, condominiums, homes, etc. You have your pick at great prices.

So, what is wrong with these properties? Why are they so cheap? Why is all this property being foreclosed on? When someone buys a property or home, they usually finance most of that home and the financing comes from a bank or a lender. This lets people pay the seller for the property or home, and lets them pay a monthly payment to the bank. Some years ago people were choosing homes that were really out of their price range based on their income levels, and using other types of financing besides a fixed interest loans. These are variable interest loans or ARMS that start out with smaller payments, and over time the payments would increase. Unfortunately they did not expect the interest rates to go up so quickly. Now they have been stuck without being able to make their monthly payment.

A lot of people got into too much of a house for their income level, the wrong type of mortgage for their needs, or lost their job and just couldn't continue to pay their home, so they have to return it to the lender.

People just have no other option! They have to let the bank foreclose, but the bank doesn't really want to foreclose either. This represents a loss for them and more expenses. After all they now have to upkeep these homes, and more than 250,000 homes is a lot!

These lenders need to get rid of the property and get rid of it quickly and this means they need to either sell it directly or through an auction. They are known to even offer a 20% discount. The bank needs the money to make other loans.

This leaves you with a great number of opportunities available in Florida. And this why there are so many houses and properties at such great prices, and why it is a good idea to invest in these as an investment or just as a great deal on a home.